Good afternoon, ladies and gentlemen. And welcome to Gran Tierra Energy's Results Conference Call for the First Quarter 2016. My name is Mary and I will be your coordinator for today. At this time, all participants are in a listen-only mode. Following the initial remarks, we will conduct a question-and-answer session for Securities, Analysts and Institutions. Instructions will be provided at that time for you to queue up for questions [Operator Instructions] I would like to remind everyone that this conference call is being webcast and recorded today Wednesday, May 4, 2016 at 11:00 AM Eastern Daylight Time. Please be advised that in addition to historical information, our discussion during this conference call will include forward-looking statements. These forward-looking statements are based on management's current expectations, a number of significant assumptions and are subject to a number of other factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The factors that could cause actual results to differ are discussed in Gran Tierra Energy's Form 10-K, Form 10-Q and other reports and filings with the Securities and Exchange Commission. Gran Tierra Energy does not undertake any duty to update any forward-looking statements. Today's conference call also includes certain financial measures that were not prepared in accordance with Generally Accepted Accounting Principles in the U.S., including operating netbacks, fund flows from continuing operations, EBITDA and adjusted EBITDA. The press release disseminated by Gran Tierra Energy this morning includes a reconciliation of those non-GAAP items with the company's GAAP net income or loss, as well as information about why management believes these measures are useful in evaluating the company's performance and is available on Gran Tierra Energy's website at www.grantierra.com. All dollar amounts mentioned in today's conference call are in U.S. dollars unless otherwise stated. Finally, this earnings call is the property of Gran Tierra Energy Inc. Any copying or rebroadcasting of this call is expressly forbidden without the written consent of Gran Tierra Energy. I will now turn the conference call over to Gary Guidry, President and Chief Executive Officer of Gran Tierra. Mr. Guidry, please go ahead.

Thank you, Mary. Good morning and welcome to Gran Tierra's first quarter 2016 results conference call. My name is Gary Guidry, Gran Tierra's President and Chief Executive Officer; and with me today is Ryan Ellson, our Chief Financial Officer. Earlier this morning, we issued a press release that included detailed financial information about our first quarter 2016 results. In addition, the Q1 results on Form 10-Q has been filed on EDGAR and is available on our website. I'm going to begin today talking about some of the key developments for the first quarter. Ryan will then take a few minutes to discuss key aspects of this year's financial results. We will then open the line for questions. Gran Tierra has fundamentally changed its strategic approach, the disciplined capital allocation and net asset value per share growth, and are successful transitioned to our Colombian-focused exploration and production growth company. We continue to focus on organic growth, as well as remaining disciplines and our access to business development opportunities. We have been successful on the acquisitions front and have closed two highly strategic acquisitions; Petroamerica and PetroGranada in January 2016 which increased our risk-prospective resource by approximately 50%. We are committed to being a low cost operator, thus not merely trying to survive in the current environment but to drive and position for growth in 2016 and beyond. Overall, in Q1 2016 was a strong growth quarter for Gran Tierra with ongoing difficult price environment. The production performance with low declines, low cost, and our two core assets, Moqueta and Costayaco highlight the quality of our base assets, the strength of our operating team, and the ability to be successful even in challenging environment. With $81 million in working capital, a $109 million of net proceeds from our convertible debenture offering and…

Good morning. Overall, Gran Tierra had a strong first quarter. The focus in Q1 was on executing our 2016 base capital program, improving our cost structure, ensuring capital discipline to protect our balance sheet and closing and integrating the two strategic acquisitions of Petroamerica and PetroGranada. During Q1, our 2016 capital program has so far come in on-schedule and under budget which is a positive indication that our efforts to reduce costs and improve capital discipline and processes have been successful. We will continue our efforts to grind down both, capital and operating costs throughout 2016 both through process improvements, efficiencies and renegotiation of contracts. We believe the acquisitions of Petroamerica and PetroGranada are strategic and strengthen our position as the premier operator and land-holder in the Putumayo basin. The acquired undeveloped land holdings and exploration development portfolios are complementary to Gran Tierra's own exploration portfolio. We have said this before but is worth repeating, we continue to aggressively and systematically review acquisition opportunities. However, we continue to maintain our long-term view that any opposition must offer compelling value and be a strategic fit for the company. With persistent low oil prices we continue to see opportunities, however, we will continue to remain disciplined. Our credit facility with a strong syndicate of banks remains undrawn and will provide us with liquidity in the future, if and when needed to provide growth in Columbia. Subsequent to the end of the first quarter, we successfully closed an offering of $115 million aggregate principal amount of convertible senior notes pursuant to a private placement of qualified institutional buyers. We granted the initial purchase a right to purchase up to an additional $15 million aggregate print principal amount of notes. On April 22, 2016 this overall allotment option was exercised. The notes pay interest…

Thank you, Ryan. As mentioned, we have seen strong results at both, Moqueta and Costayaco during the first quarter of 2016 despite challenging oil prices. We are excited about kicking-off the exploration program in the Putumayo-7 block later this summer. Ryan has summarized the strong financial position of the company. We are successfully executing our strategy of expanding and diversifying our land and asset-base in all of the production base -- productive basins in Colombia and continue our disciplined process of looking at new opportunities. We believe that Gran Tierra has now repositioned for future success as a pre-eminent independent producer in Colombia. I will now turn the call back over to the operator. And Ryan and I will be happy to take any questions. Operator, please go ahead.

[Operator Instructions] The first question is from Felipe Santos from JP Morgan. Please go ahead.

Hello, everyone, good morning. Just two questions; first one, in terms of governments and provisions, in last quarter we saw your company provisioning and it will bring impairments consistently. And I was wondering if we still should be seeing more of those impairments coming -- I mean, what would be -- define a number that should we should consider once the assets that we should have considered to be fair. Besides the second question is, in terms of given -- this quarter you visited higher sales because of inventories and etcetera but what is the trend for the next quarter excluding -- have more production -- storage to deliver and therefore the sales will be higher than production. And that's probably the second question.

Good morning, Felipe. With respect to impairments, again, this is really just a result of U.S. GAAP with the continued price decline, we will continue to see impairments as it really comes down to what price do we do see in Q2 of this year because it really is what we do -- when we come up with the number for the price that we used in the ceiling test, it really is the prior twelve months. So a lot will depend on what will happen in Q2.

Okay, perfect. Thanks so much.

Especially inventory, inventory really builds when we ship through the OCP down in Ecuador, because really the custody doesn't transfer off the well until it's loaded on the tanker. And right now we're putting all the volumes through the OTA and through the trucking. So we don't have the same inventory buildup that we would have at the end of Q4 and when we used the OCP in general.

Perfect, understood. Just a follow-up on the first question; what is the divided price long-term that you're considering when doing this impairment?

Well, we actually don't use a long-term price, I think for this quarter it was $44. I believe that was the average of the prior twelve months. So we actually can't use a future price, it's all historic. There are just lot of price going forward.

Understood, perfect. Thanks so much.

Thank you.

Thank you. The following question is from David Dudlyke from Dundee Capital Markets. Please go ahead.

Good morning, everyone. I know that Moqueta volumes are up some 25% from February, at United States. I presume that's off the back of Moqueta-23. You've got another well, 22 yet to be drilled and completed. So with that further well, are you still maintaining your 7,800 barrel a day average for 2016 for Moqueta or do you actually believe that the field is actually outperforming expectations in terms of our official lift and water injection?

I think for now, David, we're going to stick with our with our forecast. We are seeing some interesting results in both, Costayaco and Moqueta. As drill wells, the unexpected pain in Costayaco is encouraging to us that although we're finishing the capital program with the reserves as a book today. We see some potential opportunity; we'll explore there as we take a few months and do our reservoir modeling, our G&G work. At Moqueta, I think we're encouraged at Moqueta as well from the drilling results but it is going to take some -- once we finish the drilling programs for this year, we will integrate the new information and look at what's next. But the answer to your question is, we're going to stick with our forecasts.

Now you talk about finishing the current development program; drilling out the parts by mid-year and you allude to significant free cash flow there also. But I mean, what are you actually modeling for maintenance CapEx on these two assets? I mean there will work over necessarily that you have to factor in, there will be facilities maintenance. I mean what sort of low level CapEx do you envisage in terms of maintenance better-off?

On a capital basis, you are correct; we will have the regular operating cost work overs just to maintain change pumps and that type work. So they are mainly carried in OpEx and we don't expect any change in what we've seen over the last couple of years on the OpEx front. And in fact, we're still looking at ways to reduce OpEx. On the capital front, less than $10 million, and we're comfortable saying that with the reserves as booked today we have substantial facilities capacity in place, both, water injection, as well as the fluid processing to separate as water cuts increase over the life of the field in the next five years. We just don't see any other big investments with the reserves as booked today. Any capital that we would direct at these fields would be under a different preserved scenario. Less than ten is the answer.

And that's for the pair?

Yes.

Okay. I'm just intrigued until you've spoken about your ability to pull down the drill times, I mean previous courts. I'm just intrigued as to the variance between the caps and drill time at Costayaco and Moqueta? And the ability to deliver that in terms of costs -- cost is down 25% not to be sneezed at but Cap sit down 46%. Why was there such a variance in costs coming true cost a typically high percentage the overall…

Yes, a big part of that is the fixed cost that goes into the total capital, the tangibles, they go into that. What we really focused on is, how do you get these wells drilled real faster, as well as some of the contractual costs, those will start when we retender a lot of our services in the first quarter. And we hope to see those reflected as we continue drilling exploration in the second half of the year. But I think the answer to your question is, the significant increase in efficiencies and time is definitely a focus of ours because of the day rate of these rigs and the efficiency in drilling these and the reason that cost does not track it exactly is the tangible part of that. But we are working on both.

And then, Mikael [ph] did also is -- how we operated operations. So there is not as much leeway and flexibility as far as cost within Moqueta.

But they came down further. The last question I have is on Suroriente. You've got access to that production stream from Petroamerica. Now you're not with the fact to operate but I was just looking at the recent NH data production at Suroriente by my numbers is down from 37% since year-end, it's down about 42% over the last six months according to the NH. So I guess a question to you guys would be what measures are you able to effect via [ph] patrol and the current operator to reverse such declines? I know we've spoken about such previously but I hadn't appreciated quite how much the production's falling away on that particular block.

Yes, we're working with the operator, our partners, they've gone through a bit of a transition. As we've integrated Petroamerica, the Vetra ownership has gone through a bit of a transition and we're working with them as the operator. And I would say, we're an active partner and the process -- the big reason that production is down is work overs, they had some pump failures, had some issues -- mechanical issues, and it's simply a matter of deploying capital. But I can tell you David, we're not only excited about starting our drilling down in Putumayo-7, we're setting up operations, so we're right next door. And hopefully we'll be able to provide -- we are providing some synergy now with our team, and we hope to increase that synergy and help Vetra in our joint programs there.

Okay. That's all I had. Thank you very much.

[Operator Instructions] The following question is from Joe Kimmino [ph] from Morningstar. Please go ahead.

Hi guys, thanks for the time, I have two questions. First, on operating expenses and I think you've touched on this briefly. Do you see room for improvement in the future, and if so, how significant is it? And then my second question would be on transportation expenses. How do you think about the significant differences in pricing between pipeline and your alternative method such as transportation by trucking?

I'll address the operating cost and then Ryan will talk about the transportation and logistics of our marketing because we've got a big focus on both. On the operating cost side, there always will be more efficient ways to do things, just like the drilling. This last quarter we've focused on chemicals, we spend a good part of our variable OpEx on chemicals, and we've had some varying -- some encouraging results, and we hope those flow through to the rest of this year. It was late in the quarter when we had some success. Those are permanent changes that we can make through OpEx but I think if you carve, if you separate the transportation from OpEx -- our operating costs are less than $10, they are in the $8 to $10 range which -- we're always looking at how do you how do you drive those down but the biggest way that we see is with a very strong operating team that scalable as to add value production -- to reduce their debt unit cost. So we're never happy with unit cost but $8 to $10, we believe that we're in a good place. And we look to fine tune that.

Yes, and with respect to transportation, one of the interesting thing with transportation is, pipeline tariffs are in U.S. dollars whereas all of our trucking costs are in peso, and with the devaluation of the peso the U.S. dollar has really narrowed the gap as far as the netback from those different transportation routes. So really it's down to $2 to $3 difference, we factor in the differentials that you get at the different sales points. So really whether we go through a pipeline or truck, it's about $2 to $3 difference.

Okay, great, that's helpful. Thank you.

No problem, thanks.

Thank you. Gentlemen, there are no further questions at this time. Please continue.

Thank you, operator. I would once again like to thank everyone for joining us today. We look forward to speaking with you over the next quarter and to update you on our ongoing progress. We will be holding Investor Day presentations in London, Toronto, and New York during June. Rodger Trimble, our Director of Investor Relations, will be in contact. Thank you and have a nice day.

Thank you. The conference has now ended. Please disconnect your lines at this time. Thank you for your participation.